[Temperature Check] Lock treasury UNI in Maker vault and use borrowed DAI to generate yield

The idea has come up a few times throughout the forum, the exact mechanisms like amount, where to generate yield and what to do with the proceeds can be discussed further if people seem to agree that this is a reasonable or interesting use of funds.

Lock treasury UNI in Maker vault and use borrowed DAI to generate yield?
  • Yes
  • No

0 voters


Hi, Maker governance participant here. Currently the rate to borrow Dai against UNI is 3%. The current lending rate for Dai on Compound is 6.83%, so there is a simple arbitrage there, however, Compound rates fluctuate rapidly so that is one risk.

Alternatively, Uniswap governance could borrow Dai using some part of its treasury and use some part of the remainder to provide liquidity on the UNI/DAI pair without having to sell UNI for stablecoins. The Dai could be swapped for other stablecoins to provide liquidity on other pairs.

The Maker community would be excited to have Uniswap as a customer. Currently Maker supports a similar treasury vault from the Yearn protocol, and it’s exciting to see more of these protocol-to-protocol partnerships develop.


Is maker have enough diversified collateral to handle that much of one token and potential undermine the dai?

1 Like

Maker already has UNI as a collateral type, it is currently at 80% utilization of the debt ceiling.
If there is sufficient interest to pursue this proposal, we would work with Maker governance to estimate reasonable parameters.


I envision making use of the simple arb you mention as a good first step, but would be curious to see what others think.
Perhaps providing stablecoin liquidity on Uniswap V3 would be a nice approach.


There are fixed rate protocols that let you lock in APR. For example, Notional offers 5-8% to DAI lenders at the moment, depending on the term.